The dilemma, natural gas or electricity?

These companies seek to resuscitate CFE plants

Without gas storage and production, we will depend more and more on the international market, where our trade balance will include gasoline, diesel, natural gas in the short term, the latter being the most important, before being a primary energy that influences all our activities based on electricity consumption.

The importance of achieving this will depend on the Ministry of Energy, which must facilitate farm-outs or new area rounds; the SHCP must press to change the regime for the payment of shared utility rights proposed by the Senate; The Legislative Power must grant resources to Pemex to be able to exploit the gas basins, and CENAGAS, with the new direction, must have storage in formations for natural gas before 2024, in accordance with what had already been proposed to tender or add others.

Gas is strategic for combined cycle electricity generation. Mexico is currently in check, because we will have to pay more for supply and demand in the next two decades due to the lack of production autonomy. What we import from this primary energy comes from similar fields that we have in Mexico.

The Federal Electricity Commission produces its energy in 40% with natural gas, the total of the country makes it 60%. When producing with fuel oil, it would be polluting more than 110%, and with coal, 225%.

Having electricity does not depend on having the technology, machines, transmission-distribution lines and users to have a market, it depends largely on having the primary energy to produce it. Today the world carries out activities mostly through electricity and, in some years, transportation could reach 30 to 40%.

So, it is not a problem of electricity generation, it is an energy problem that we must consider from the context of taking primary energy, transformation and rejection into heat or greenhouse gases.

Will we be on time?

Editor’s note: Ramses Pech is an economics and energy industry analyst. He is a partner of Caraiva y Asociados-León & Pech Architects. Follow him on Twitter and / or LinkedIn. The opinions in this column belong exclusively to the author.

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